8331.HK WACC - Weighted Average Cost of Capital
The WACC of PB Group Ltd (8331.HK) is 8.0%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.7% | 10.25% |
| Tax rate | 16.2% - 19.2% | 17.7% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.3% - 8.7% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.99 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.7% |
| Tax rate | 16.2% | 19.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.3% | 8.7% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8331.HK | PB Group Ltd | 1.09 | -0.03 | -0.02 |
| 000060.SZ | Shenzhen Zhongjin Lingnan Nonfemet Co Ltd | 1.17 | 0.98 | 0.5 |
| 000762.SZ | Tibet Mineral Development Co Ltd | 0.13 | 1.3 | 1.17 |
| 000975.SZ | Yintai Gold Co Ltd | 0.03 | 0.26 | 0.26 |
| 1303.HK | Huili Resources Group Ltd | 0.26 | -0.16 | -0.13 |
| 1380.HK | China Kingstone Mining Holdings Ltd | 0.52 | 1.63 | 1.14 |
| 3833.HK | Xinjiang Xinxin Mining Industry Co Ltd | 0.5 | 0.87 | 0.61 |
| 3939.HK | Wanguo International Mining Group Ltd | 0.01 | 0.04 | 0.04 |
| 600531.SS | Henan Yuguang Gold & Lead Co Ltd | 1.27 | 1.15 | 0.56 |
| 601020.SS | Tibet Huayu Mining Co Ltd | 0.05 | 1.37 | 1.32 |
| 601168.SS | Western Mining Co Ltd | 0.61 | 1.05 | 0.69 |
| Low | High | |
| Unlevered beta | 0.5 | 0.61 |
| Relevered beta | 0.99 | 1.18 |
| Adjusted relevered beta | 0.99 | 1.12 |
8331.HK's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 8331.HK:
cost_of_equity (10.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.99) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.